The artist has given the complete sum of his £25,000 award cash to the trust for venues, which operates to preserve the United Kingdom's independent concert spaces.
He was awarded the cheque on October 16 as his new release the album was chosen as the top album of the past year.
The musician has opted to hand the money over to the Music Venues Trust, in acknowledgment of the crucial part grassroots venues had in his initial steps.
"I personally would not have achieved what I am doing today if it weren't for all the performances I did around the region, and beyond, when I was beginning," remarked Fender. "These venues are legendary, but they are facing challenges."
From early 2023 onward, more than 150 of these locations have permanently closed – about one-sixth of the entire UK sector.
Over the past year, well-known musicians such as Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its attempts to keep the scene afloat, by applying a modest fee to their ticket prices, which supports local stages.
Sam Fender also joined in, generating over £100k on his live tour to assist 38 local spots across England, Scotland, and Wales.
The money supported spaces that were dealing with possible closure due to difficulties arising from flooding, blazes and personal losses, as well as regulatory hurdles, conflicts and sound issues.
Some locations were granted financial assistance in modernizing facilities and sound and lighting systems that positively impacted artists and audiences.
"The notion that money from concerts in big venues helps the local stages, where it kicks off for musicians like me, is just sensible," Sam Fender has said.
Fender is far from the only musician to donate his Mercury Prize winnings to good deeds.
Back when the band won the prize in 1996 for their album the album, lead singer Cocker stated that the group would give their prize money to the non-profit War Child.
During 2002, artist she shared her prize across several organizations, such as the NSPCC and a Sickle Cell organization.
"I also contributed a thousand pounds to the center, to their gymnastics class, because I did gymnastics when I was a child and they required new equipment," Ms Dynamite shared with outlets.
In recent years, Ezra Collective gave their winnings to the youth organization that developed their act, as well as other local music groups.
Additionally the 1994 recipients they contributed their award to a MS organization after a close contact was diagnosed the disease.
"Receiving the award was ample," said vocalist Heather Small. "The prize was the cherry on top but we could do without the cherry, because we had the honor. So our victory touched somebody else's life."
Last week, the trust announced it had protected two grassroots venues in that region, by transferring them to local control.
One venue in Southampton and the second in Bristol were purchased under the public acquisition program, which is backed by a national body and music fans who purchase "shares" in the properties.